ARK sells remaining GBTC holdings, invests $100M in Bitcoin ETF
ARK Invest, an institutional asset management firm led by Cathy Wood, on Dec. 28 dumped all of its holdings in Grayscale Bitcoin Trust (GBTC) worth $200 million, according to Bloomberg ETF analyst Eric Balchunas.
Today ARK sold the rest of its $GBTC position (it was ARKW's largest holding a month ago) and used half of it to buy $100m-ish $BITO, possibly as a liq transition tool to keep beta into btc when it enters $ARKW. Or $ARKB End of an Era. h/t @DilksJay @funwithnumberz pic.twitter.com/J1i92qcmzo
— Eric Balchunas (@EricBalchunas) December 28, 2023
The investment firm used half of the proceeds from the sale of GBTC, about $100 million. However, ETF analysts believe it is a temporary parking spot for the investment firm as it seeks a more liquid-rich portfolio. Eric Balchunas, an analyst at Bloomberg ETF, said that Arc's latest investment change makes it the second-largest shareholder of Bitto.
ARK Invest started loading GBTC shares in October when the price of Bitcoin hit $34,000 for the first time; At the time, the investment firm sold 100,739 GBTC shares worth $2.5 million from the ARK Next Generation internet ETF (ARKW). The firm sold 809,441 GBTC shares worth $27.9 million on December 19.
In addition to dumping GBTC, ARK Invest also liquidated 148,885 Coinbase shares worth $27.5 million from the ARK Next Generation internet ETF (ARKW). The asset management firm's latest investment move comes at a critical time of heightened speculation surrounding the approval of a spot bitcoin ETF.
Cathy Wood and Arch Invest business today 12/27 pic.twitter.com/WrKtFlNKoD
— Ark Invest Daily (@ArkkDaily) December 28, 2023
Related: BlackRock, ARK Review Bitcoin ETF Plans Against SEC Cash-Only Model
ETF analysts like Balchunas have given the Bitcoin ETF a 99% chance of approval before the January 10, 2024 expiration. ARK Invest CEO Kathy Wood, a well-known Bitcoin fan, said that a Bitcoin ETF is very likely.
During a recent interview, Wood said that growing speculation surrounding the potential approval of spot Bitcoin ETFs could negatively impact the price of BTC in the short term, but the long-term outlook is promising.
Magazine: SEC Delays Ether ETFs, Binance Deal Approved and Another Court Loss for SBF: Hodler Digest, December 17–23
